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1. Direct Materials Purchases Budget

Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12'' and 16'' frozen pizzas for September:

	Units
	12" Pizza		16" Pizza
Budgeted production volume	13,400		25,700

Three direct materials are used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

		12" Pizza		16" Pizza
Direct materials:
	Dough	0.80	lb. per unit	1.50	lb. per unit
	Tomato	0.50		0.70
	Cheese	0.70		1.30

In addition, Lorenzos has determined the following information about each material:

	Dough		Tomato		Cheese
Estimated inventory, September 1	530	lb.	160	lb.	380	lb.
Desired inventory, September 30	560	lb.	160	lb.	410	lb.
Price per pound	$1.10		$2.50		$3.40

Prepare September's direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

2.

Direct Labor Cost Budget

MatchPoint Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models. The production budget for March for the two rackets is as follows:

	Junior	Pro Striker
Production budget	8,100 units	22,300 units

Both rackets are produced in two departments, Forming and Assembly. The direct labor hours required for each racket are estimated as follows:

	Forming Department	Assembly Department
Junior	0.2 hour per unit	0.4 hour per unit
Pro Striker	0.3 hour per unit	0.75 hour per unit

The direct labor rate for each department is as follows:

Forming Department	$16 per hour
Assembly Department	$8 per hour

Lorenzo's Frozen Pizza Inc. Direct Materials Purchases Budget For the Month Ending September 30 Dough Tomato Units required for production: 12" pizza Cheese Total 16" pizza Total pounds required bitum pilnn Total units to be purchased Unit price Total direct materials to be purchased Prepare the direct labor cost budget for March. MatchPoint Racket Company Direct Labor Cost Budget For the Month Ending March 31 Forming Assembly Department Department Hours required for production: Junior Pro Striker Total hours required Hourly rate Total direct labor cost

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